XBI vs. SMH

Last updated Jun 16, 2026

XBI (SPDR S&P Biotech ETF) and SMH (VanEck Semiconductor ETF) are both exchange-traded funds - XBI is a Health & Biotech Equities fund tracking the S&P Biotechnology Select Industry Index, while SMH is a Semiconductors fund tracking the MVIS US Listed Semiconductor 25 Index. Both are passively managed. Over the past 10 years, XBI returned 9.98%/yr vs 38.18%/yr for SMH. A 0.51 correlation means they provide meaningful diversification when combined. Both charge a 0.35% expense ratio.

Performance

XBI vs. SMH - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in SPDR S&P Biotech ETF (XBI) and VanEck Semiconductor ETF (SMH). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, XBI achieves a 11.87% return, which is significantly lower than SMH's 79.69% return. Over the past 10 years, XBI has underperformed SMH with an annualized return of 9.98%, while SMH has yielded a comparatively higher 38.18% annualized return.

XBI

• 1D: 1.95%
• 1M: 4.37%
• YTD: 11.87%
• 6M: 11.41%
• 1Y: 63.76%
• 3Y*: 16.08%
• 5Y*: 0.52%
• 10Y*: 9.98%

SMH

• 1D: 4.38%
• 1M: 16.31%
• YTD: 79.69%
• 6M: 83.94%
• 1Y: 152.58%
• 3Y*: 62.32%
• 5Y*: 39.72%
• 10Y*: 38.18%

*Multi-year figures are annualized to reflect compound growth (CAGR)

XBI vs. SMH - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
XBI SPDR S&P Biotech ETF	11.87%	35.89%	1.01%	7.60%	-25.87%	-20.45%	48.33%	32.56%	-15.28%	43.77%
SMH VanEck Semiconductor ETF	79.69%	49.17%	39.10%	73.38%	-33.53%	42.13%	55.53%	64.45%	-9.05%	38.48%

Correlation

The correlation between XBI and SMH is 0.35, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.35
Correlation (3Y) Calculated over the trailing 3-year period	0.39
Correlation (5Y) Calculated over the trailing 5-year period	0.46
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Feb 6, 2006	0.51

The correlation between XBI and SMH shifts across timeframes, from 0.35 (1 year) to 0.51 (all time), reflecting how their relationship changes across market environments.

XBI vs. SMH - Sectors Allocation Comparison

Sectors	XBI	SMH
Healthcare	99.7%	-
Financial Services	0.3%	-
Basic Materials	0.2%	-
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Energy	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	100.0%
Utilities	-	-

Return for Risk

XBI vs. SMH — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

XBI

XBI Risk / Return Rank: 86
XBI Sharpe Ratio Rank: 85
XBI Sortino Ratio Rank: 83
XBI Omega Ratio Rank: 74
XBI Calmar Ratio Rank: 94
XBI Martin Ratio Rank: 91

SMH

SMH Risk / Return Rank: 96
SMH Sharpe Ratio Rank: 98
SMH Sortino Ratio Rank: 95
SMH Omega Ratio Rank: 95
SMH Calmar Ratio Rank: 97
SMH Martin Ratio Rank: 97

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

XBI vs. SMH - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for SPDR S&P Biotech ETF (XBI) and VanEck Semiconductor ETF (SMH). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	XBI	SMH	Difference
Sharpe ratio: Return per unit of total volatility	2.45	4.61	-2.15
Sortino ratio: Return per unit of downside risk	3.29	4.60	-1.31
Omega ratio: Gain probability vs. loss probability	1.39	1.65	-0.26
Calmar ratio: Return relative to maximum drawdown	6.59	10.28	-3.69
Martin ratio: Return relative to average drawdown	19.47	37.77	-18.30

XBI vs. SMH - Sharpe Ratio Comparison

The current XBI Sharpe Ratio is 2.45, which is lower than the SMH Sharpe Ratio of 4.61. The chart below compares the historical Sharpe Ratios of XBI and SMH, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

XBI vs. SMH - Drawdown Comparison

The maximum XBI drawdown since its inception was -63.89%, smaller than the maximum SMH drawdown of -84.96%. Use the drawdown chart below to compare losses from any high point for XBI and SMH.

Drawdown Indicators

	XBI	SMH	Difference
Max Drawdown Largest peak-to-trough decline	-63.89%	-84.96%	+21.07%
Max Drawdown (1Y) Largest decline over 1 year	-9.72%	-14.93%	+5.21%
Max Drawdown (3Y) Largest decline over 3 years	-32.99%	-35.74%	+2.75%
Max Drawdown (5Y) Largest decline over 5 years	-54.71%	-45.30%	-9.41%
Max Drawdown (10Y) Largest decline over 10 years	-63.89%	-45.30%	-18.59%
Current Drawdown Current decline from peak	-21.16%	0.00%	-21.16%
Average Drawdown Average peak-to-trough decline	-20.93%	-41.04%	+20.11%
Ulcer Index Depth and duration of drawdowns from previous peaks	3.29%	4.06%	-0.77%

Volatility

XBI vs. SMH - Volatility Comparison

The current volatility for SPDR S&P Biotech ETF (XBI) is 10.55%, while VanEck Semiconductor ETF (SMH) has a volatility of 16.71%. This indicates that XBI experiences smaller price fluctuations and is considered to be less risky than SMH based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	XBI	SMH	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.55%	16.71%	-6.16%
Volatility (6M) Calculated over the trailing 6-month period	20.83%	27.97%	-7.14%
Volatility (1Y) Calculated over the trailing 1-year period	26.18%	33.39%	-7.21%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	32.22%	35.53%	-3.31%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	32.03%	32.86%	-0.83%

XBI vs. SMH - Expense Ratio Comparison

Both XBI and SMH have an expense ratio of 0.35%.

Dividends

XBI vs. SMH - Dividend Comparison

XBI's dividend yield for the trailing twelve months is around 0.32%, more than SMH's 0.17% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
SMH VanEck Semiconductor ETF	0.17%	0.31%	0.44%	0.60%	1.18%	0.51%	0.69%	1.50%	1.88%	1.43%	0.80%	2.14%
XBI SPDR S&P Biotech ETF	0.32%	0.37%	0.15%	0.02%	0.00%	0.04%	0.20%	0.00%	0.28%	0.24%	0.26%	0.61%

Frequently Asked Questions

Can I hold both XBI and SMH in my portfolio?

XBI and SMH have a correlation of 0.35, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, XBI or SMH?

SMH has higher volatility (16.71%) compared to XBI (10.55%). In terms of maximum drawdown, XBI dropped -63.89% vs SMH's -84.96%.

Which ETF is better, XBI or SMH?

On 10-year performance, SMH leads with 38.18% vs 9.98% for XBI. Both ETFs have the same 0.35% expense ratio. On volatility, XBI has been the lower-risk option at 10.55%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, XBI or SMH?

Over the 10-year period, SMH has performed better with a 38.18% return vs 9.98%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, XBI or SMH?

XBI and SMH have the same expense ratio: 0.35% per year.

Which ETF pays a higher dividend yield, XBI or SMH?

XBI has the higher dividend yield at 0.32%, compared with 0.17% for SMH.

What is the main difference between XBI and SMH?

XBI is categorized as Health & Biotech Equities, while SMH is Semiconductors. XBI tracks S&P Biotechnology Select Industry Index, while SMH tracks MVIS US Listed Semiconductor 25 Index. They also come from different issuers: State Street and VanEck.

Which has better risk-adjusted returns?

SMH currently has the higher Sharpe Ratio (4.61 vs 2.45), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.